Autumn 2023

SOMEWHAT SOBER REFLECTIONS

Despite regular top ups, my glass has felt a little half empty lately, as opposed to its normal half (or mostly) full. I suspect many of you feel a bit the same.

The economic recovery from Covid has taken longer than we expected, costs are up, and productivity is down. The war in Ukraine, supply chain issues, workforce challenges, and increased input and production costs have all been exacerbated by flood and drought and increasingly volatile weather as the climate continues to change. Despite these challenges, food and fibre export revenue reached a record $53 billion last year, with the politicians suggesting our Country’s global brand is at an all-time high.

More recently China has relaxed its Covid restrictions, and the United States needs rebuilding following drought, giving us a renewed window of opportunity. The NZ dollar has crept higher, but beef prices look set to improve in the months ahead, and several alternative protein companies have started to struggle big time; their share prices have tumbled. I’ll drink to that.

Jacinda’s announcing that her tank was empty, almost got me feeling half full again. Christopher Luxon doesn’t drink but sounds more pragmatic about the business of farming and the impact

Government policy and cost increases are having on confidence. His tank seems to be gearing up to roll over the other Chris at the election this year.

So why am I so anxious? Perhaps it’s the Autumn leaves when there has been no summer sun or the atmospheric rivers that seem to cut swathes through the country. Perhaps it’s the urgent need for science-based solutions for methane or the trees being planted on our hill sides with seemingly gay abandon. Perhaps it’s the divisions within our sector about sustainability when we should be working more closely together.

As the song goes, sometimes if feels like we are running out of aces, when every hand can be a winner or a looser, the stakes seem to get higher every year. The future of our industry hangs in the balance and with it the future of our country. 2023 is going to require some strong and ‘preferably sober’ leadership, so let’s not leave it to chance, let’s pull together in the same direction. Now would somebody get me a drink!?

MARKETING UPDATE

There has been a significant swing away from the United States back towards China with the re-establishment of trimming business into China late in December after a lapse of two to three months in this trade. The percentage of Greenlea exports to China has increased by 10% from Q4 2022 into Q1 2023 so far. The USA percentage has dropped by 5%.

The introduction of competition for the base trimming prices has seen values increase across the board for almost all products. A fluctuating exchange rate has frustratingly negated some of these gains, but the overall trend is definitely positive with a looming drop in US domestic production driving strong demand for imported beef.

After almost three years of not being able to nurture our customer relationships with in-market visits, it will be great to get out and about to see our loyal partners. We are starting to receive notifications of several

customer visits to New Zealand also, so it will be nice to be able to host them. From those who have visited Greenlea so far it has been great to hear that our product quality and service levels remain superior to our competitors.

Shipping and logistics continue to be a massive challenge for New Zealand exporters, and while it seems that the rest of the world is slowly getting back to more of a normal situation, New Zealand is lagging behind in terms of port functionality and ability to maintain accurate scheduling. At this point there is no solution in sight which will likely keep the cost of freight high for the near future.

GREG’S COLUMN

Extreme weather events, a new Prime Minister, an election year, Fieldays in the summer, labour shortages still an issue and the list of talking points goes on.

The Bulletin had a summer hiatus as the Greenlea team pressed the flesh throughout the spring at our farmer supplier meetings across the North Island and at the Fieldays held at the end of November. Both very successful ventures in my mind. Of note is that Fieldays will be back to its usual winter positioning in June this year.

The abundant rain and warm weather prevalent in most North Island regions have resulted in substantial grass growth and good weight gain for dry stock farmers, as well as helping maintain production for dairy farmers. However, for both bull and dairy farmers, it is advisable to act promptly in getting your cattle into the works in March, due to the limited availability of space that will ensue as the dairy cow cull commences. Despite the presence of ample feed and high replacement costs, numerous bull farmers have yet to complete their processing; this will only worsen the availability of space. Talk with your Greenlea buyer and book your stock in as early as you can to avoid a lengthy wait.

The next instalment of farm level regulation you are likely to encounter are Freshwater Farm Plans (FWFP). These are management plans that will be developed by yourselves, specific to your farm/s. They are purposed to improve the quality of the country’s freshwater resources. The plans aim to address water quality issues by identifying and addressing the sources of pollution, such as sediment, nitrogen, and phosphorus runoff from agricultural lands. They should include specific targets and actions to reduce these pollutants and promote sustainable land use practices. The plans also involve regular monitoring and reporting to ensure progress is being made. The implementation of Freshwater Farm Plans is a key component of the New Zealand government’s goal to improve the health of the country’s rivers, lakes, and groundwater resources.

Greenlea is working closely with local councils

and central government agencies to align these plans with current Farm Plans you may have in place and will communicate as much real information to you as succinctly as we can. We will again work closely with yourselves and industry to get low cost (as in your time only) options such as catchment or area workshops started. These will allow further explanation of the FWFP and provide an opportunity for you to complete yours.

As regulatory and compliance measures increasingly encompass all aspects of the farming industry, and with the termination of live export cattle, I foresee a trend towards the establishment of high-performance farming teams through building and maintaining reliable relationships. These teams will entail the connection of beef finishers with dairy farmers, who will rear cross-bred beef calves of superior quality, and store stock farmers, who will raise these calves to a maturity of 15 to 18 months. Greenlea recognizes the potential value of such arrangements and has the capacity to facilitate these connections between dairy and sheep and beef farmers. Each of these high-performance teams will be supported by a diverse array of experts, including consultants, accountants, bank managers, fertilizer and seed representatives, and, notably, the processor. As processors assume a more proactive role in shaping the decisions of their suppliers through closer more intimate relationships, it is crucial to comprehend their expectations and requirements of your farm business. Doing so will help mitigate challenges related to availability of space and facilitate the development of supply plans that enhance the flow of capital and allow for a more stable business model. Engage your Greenlea buyer to discuss this further.

GALA DINNER CELEBRATION ACKNOWLEDGING 10 YEAR PARTNERSHIP HUGE SUCCESS

On Saturday 29th of October 2022, the Greenlea Rescue Helicopter Gala Dinner was held at the Hilton Lake Taupo to celebrate 10 years of partnership with Greenlea Premier Meats.

An incredible $45,000 was raised for the Greenlea Rescue Helicopter, thanks to a number of amazing businesses that generously donated goods to a series of auctions, drawing competitive bids from everyone in attendance. The atmosphere was one of true celebration, and with the addition of a very generous donation of $100,000 from Greenlea Premier Meats the final total raised reached $145,000 for the Greenlea Rescue Helicopter on the night!

It’s been a huge year of missions that we couldn’t have done without your support.

Together we’ve saved hundreds of lives in our community, meaning more families get to spend treasured moments together.

The evening included acknowledgement and thanks to Greenlea Premier Meats for their longstanding partnership, and a heartfelt speech from the family of Brook Slingsby a past patient, sharing their story of how the rescue helicopter crew saved Brook’s life.

The evening was steered superbly by MC Brian Kelly from NZME, and Auctioneer Simon Short from Property Brokers drew out competitive bidding on the live auctions. It was a fantastic evening celebrating special relationships and the help that allows